On the heels of a brutal takedown in the metals markets, silver suffered a stunning 3 standard deviation move to the downside as GDX endured its 3rd largest loss in history.
From Jason Goepfert at SentimenTrader: “Among Tuesday’s carnage, gold miners were the worst. The GDX fund lost nearly 10%, which is the 3rd-largest loss in its history outside of the final throes of the 2008 financial panic…
The other two huge losses occurred on April 15, 2013, and July 20, 2015. After both of those, GDX suffered more losses in the short-term but then saw buyers come in to nearly make up the huge loss. Once that was done, more selling pressure hit the fund.
Silver’s 3 Standard Deviation Move
Silver got pounded on Tuesday. The futures lost more than 5%, the worst loss in well over a year, and more than 3 standard deviations from the average daily change that investors had become accustomed to over the past year. When the metal suffered similar shocks during an uptrend, the selling pressure most often persisted over the next month, not so much thereafter.